Sr. no Topics Page no.

1 What is marketing Mix? 1

2 Price 3

3 Pricing strategies 4

4 Place 8

5 Product 13

6 Promotion 15

7 Promotion Mix 17

8 Physical Evidence 20

9 People 22

10 Process 25

11 Public relations 28

12 Political Power 37

13 Packaging 42

14 Conclusion 53

15 Bibliography 54

Marketing Mix

What is marketing Mix?

The marketing mix is probably the most famous marketing term. Its elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place , product, and promotion.

The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar!

It is the same with the marketing mix. The offer you make to you customer can be altered by varying the mix elements. So for a high profile brand, increase the focus on promotion and desensitize the weight given to price. Another way to think about the marketing mix is to use the image of an artist's palette. The marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final colour. Every hand painted picture is original in some way, as is every marketing mix.

Some commentators will increase the marketing mix to the Five P's, to include people. Others will increase the mix to Seven P's, to include physical evidence(such as uniforms, facilities, or livery) and process (i.e. the whole customer experience e.g. a visit the Disney World). The term was coined by Neil H. Borden in his article The Concept of the Marketing Mix in 1965.

Marketing mix is an imperative concept in modern marketing and academically it is referred to as the set of controllable tools that the firm blends to produce the response it wants in the target market, so it consists of everything the firm can do to influence the demand for its product (Kotler and Armstrong, 2004). It is important to

realise that marketing mix strategy of any company can have one major function, that is, strategic communication of the organisation with its customers (Proctor, 2000). It was further argued that marketing mix provides multiple paths as such communication can be achieved either in spoken form and written communications (advertising, selling, etc.) or in more symbolic forms of communication (the image conveyed in the quality of the product, its price and the type of distribution outlet chosen). However, the key element is that the main aspects of marketing mix that will be discussed below "should not be seen as individual entities, but as a set of interrelated entities which have to be set in conjunction with one another"

Price

In economics and business, the price is the assigned numerical monetary value of a good, service or asset.

The concept of price is central to microeconomics where it is one of the most important variables in resource allocation theory (also called price theory).

Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan.

Conventional definition

In ordinary usage, price is the quantity of payment or compensation for something. People may say about a criminal that he has 'paid the price to society' to imply that he has paid a penalty or compensation. They may say that somebody paid for his folly to imply that he suffered the consequence.

Economists view price as an exchange ratio between goods that pay for each other. In case of barter between two goods whose quantities are x and y, the price of x is the ratio y/x, while the price of y is the ratio x/y.

This however has not been used consistently, so that old confusion regarding value frequently reappears. The value of something is a quantity counted in common units of value called numeraire, which may even be an imaginary good. This is done to compare different goods. The unit of value is frequently confused with price, because market value is calculated as the quantity of some good multiplied by its nominal price.

There are many ways to price a product. Let's have a look at some of them and try to understand the best policy/strategy in various situations.

Pricing Strategies.

There are many ways to price a product. Let's have a look at some of them and try to understand the best policy/strategy in various situations.

Premium Pricing

Use a high price where there is a uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights.

Penetration Pricing

The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased.

Economy Pricing

This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc.

Price Skimming

Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented.

Premium pricing, penetration pricing, economy pricing, and price skimming are the four main pricing policies/strategies. They form the bases for the exercise. However there are other important approaches to pricing.

Psychological Pricing

This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example 'price point perspective' 99 cents not one dollar.

Product Line Pricing.

Where there is a range of product or services the pricing reflect the benefits of parts of the range. For example car washes. Basic wash could be $2, wash and wax $4, and the whole package $6.

Optional Product Pricing.

Companies will attempt to increase the amount customer spend once they start to buy. Optional 'extras' increase the overall price of the product or service. For example airlines will charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other.

Captive product pricing

Where products have complements, companies will charge a premium price where the consumer is captured. For example a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor.

Product Bundle Pricing

Here sellers combine several products in the same package. This also serves to move old stock. Videos and CDs are often sold using the bundle approach.

Promotional Pricing

Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free).

Geographical Pricing

Geographical pricing is evident where there are variations in price in different parts of the world. For example rarity value, or where shipping costs increase price.

Value Pricing

This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales e.g. value meals at McDonalds.

Place

Another element of Neil H.Borden's Marketing Mix is Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.

Place, distribution, channel, or intermediary.

A channel of distribution comprises a set of institutions which perform all of the activities utilised to move a product and its title from production to consumption. Bucklin - Theory of Distribution Channel Structure (1966)

Another element of Neil H.Borden's Marketing Mix is Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.

There are six basic 'channel' decisions:

Do we use direct or indirect channels? (e.g. 'direct' to a consumer, 'indirect' via a wholesaler).

Single or multiple channels. Cumulative length of the multiple channels. Types of intermediary. Number of intermediaries at each level (e.g. how many retailers in

Southern Spain). Which companies as intermediaries to avoid 'intrachannel conflict' (i.e.

infighting between local distributors).

Selection Consideration - how do we decide upon a distributor?

Market segment - the distributor must be familiar with your target consumer and segment.

Changes during the product life cycle - different channels can be exploited at different points in the PLC e.g. Foldaway scooters are now available everywhere. Once they were sold via a few specific stores.

Producer - distributor fit - Is there a match between their polices, strategies, image, and yours? Look for 'synergy'.

Qualification assessment - establish the experience and track record of your intermediary.

How much training and support will your distributor require?

Types of Channel Intermediaries.

There are many types of intermediaries such as wholesalers, agents, retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an intermediary), and many others. The main modes of distribution will be looked at in more detail.

1. Channel Intermediaries – Wholesalers

They break down 'bulk' into smaller packages for resale by a retailer. They buy from producers and resell to retailers. They take ownership

or 'title' to goods whereas agents do not. They provide storage facilities. For example, cheese manufacturers

seldom wait for their product to mature. They sell on to a wholesaler that will store it and eventually resell to a retailer.

Wholesalers offer reduce the physical contact cost between the producer and consumer e.g. customer service costs, or sales force costs.

A wholesaler will often take on the some of the marketing responsibilities. Many produce their own brochures and use their own telesales operations.

2. Channel Intermediaries – Agents

Agents are mainly used in international markets. An agent will typically secure an order for a producer and will take a

commission. They do not tend to take title to the goods. This means that capital is not tied up in goods. However, a 'stockist agent' will hold consignment stock (i.e. will store the stock, but the title will remain with the producer. This approach is used where goods need to get into a market soon after the order is placed e.g. foodstuffs).

Agents can be very expensive to train. They are difficult to keep control of due to the physical distances involved. They are difficult to motivate.

3. Channel Intermediaries – Retailers

Retailers will have a much stronger personal relationship with the consumer.

The retailer will hold several other brands and products. A consumer will expect to be exposed to many products.

Retailers will often offer credit to the customer e.g. electrical wholesalers, or travel agents.

Products and services are promoted and merchandised by the retailer. The retailer will give the final selling price to the product. Retailers often have a strong 'brand' themselves e.g. Ross and Wall-

Mart in the USA, and Alisuper, Modelo, and Jumbo in Portugal.

4. Channel Intermediaries – Internet The Internet has a geographically disperse market.

The main benefit of the Internet is that niche products reach a wider audience e.g. Scottish Salmon direct from an Inverness fishery.

There are low barriers low barriers to entry as set up costs are low. Use e-commerce technology (for payment, shopping software, etc) There is a paradigm shift in commerce and consumption which benefits

distribution via the Internet

Product

For many a product is simply the tangible, phsysical entity that they may be buying or selling. You buy a new car and that's the product - simple! Or maybe not. When you buy a car, is the product more complex than you first thought? The Three Levels of a Product.

The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).

The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looks at the products or services that customers NEED throughout their lives.

The Customer Life Cycle (CLC) and CRM

The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looks at the products or services that customers NEED throughout their lives. It is marketing orientated rather than product orientated, and embodies the marketing concept. Essentially, CLC is a summary of the key stages in a customer's relationship with an organisation. The problem here is that every organisation's product offering is different, which makes it impossible to draw out a single Life Cycle that is the same for every organization.

Let's consider an example from the Banking sector. HSBC has a number of products that it aims at its customers throughout their lifetime relationship with the company. Here we apply a CLC. You can start young when you want to save money. 11-15 year olds are targeted with the Livecash Account, and 16-17 year olds with the Right Track Account. Then when (or if) you begin College or University there are Student Loans, and when you qualify there are Recent Graduate Accounts.

When you begin work there are many types of current and savings account, and you may wish to buy property, and so take out a mortgage. You could take out a car loan, to buy a vehicle to get you to work. It would also be advisable to take out a pension. As you progress through your career you begin your own family, and save for your own children's education. You embark upon a number of savings plans and schemes, and ultimately HSBC offer you pension planning (you may want to insure yourself for funeral expenses - although HSBC may not offer this!).

Promotion

Another one of the 4P's is promotion. This includes all of the tools available to the marketer for 'marketing communication'. As with Neil H.Borden's marketing mix, marketing communications has its own 'promotions mix.' Think of it like a cake mix, the basic ingredients are always the same. However if you vary the amounts of one of the ingredients, the final outcome is different.

It is the same with promotions. You can 'integrate' different aspects of the promotions mix to deliver a unique campaign. The elements of the promotions mix are:

Personal Selling. Sales Promotion. Public Relations. Direct Mail. Trade Fairs and Exhibitions. Advertising. Sponsorship.

The elements of the promotions mix are integrated to form a coherent campaign. As with all forms of communication. The message from the marketer follows the 'communications process' as illustrated above. For example, a radio advert is made for a car manufacturer. The car

manufacturer (sender) pays for a specific advert with contains a message specific to a target audience (encoding). It is transmitted during a set of commercials from a radio station (Message / media). The message is decoded by a car radio (decoding) and the target consumer interprets the message (receiver). He or she might visit a dealership or seek further information from a web site (Response). The consumer might buy a car or express an interest or dislike (feedback). This information will inform future elements of an integrated promotional campaign. Perhaps a direct mail campaign would push the consumer to the point of purchase. Noise represent the thousand of marketing communications that a consumer is exposed to everyday, all competing for attention.

The Promotions Mix.

Let us look at the individual components of the promotions mix in more detail. Remember all of the elements are 'integrated' to form a specific communications campaign.

1. Personal Selling.

Personal Selling is an effective way to manage personal customer relationships. The sales person acts on behalf of the organization. They tend to be well trained in the approaches and techniques of personal selling. However sales people are very expensive and should only be used where there is a genuine return on investment. For example salesmen are often used to sell cars or home improvements where the margin is high.

2. Sales Promotion.

Sales promotion tend to be thought of as being all promotions apart from advertising, personal selling, and public relations. For example the BOGOF promotion, or Buy One Get One Free. Others include couponing, money-off promotions, competitions, free accessories (such as free blades with a new razor), introductory offers (such as buy digital TV and get free installation), and so on. Each sales promotion should be carefully costed and compared with the next best alternative.

3. Public Relations (PR).

Public Relations is defined as 'the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its publics' (Institute of Public Relations). It is relatively cheap, but certainly not cheap. Successful strategies tend to be long-term and plan for all eventualities. All airlines exploit PR; just watch what happens when there is a disaster. The pre-planned PR machine clicks in very quickly with a very effective rehearsed plan.

4. Direct Mail.

Direct mail is very highly focused upon targeting consumers based upon a database. As with all marketing, the potential consumer is 'defined' based upon a series of attributes and similarities. Creative agencies work with marketers to design a highly focused communication in the form of a mailing. The mail is sent out to the potential consumers and responses are carefully monitored. For example, if you are marketing medical text books, you would use a database of doctors' surgeries as the basis of your mail shot.

5. Trade Fairs and Exhibitions.

Such approaches are very good for making new contacts and renewing old ones. Companies will seldom sell much at such events. The purpose is to increase awareness and to encourage trial. They offer the opportunity for companies to meet with both the trade and the consumer. Expo has recently finish in Germany with the next one planned for Japan in 2005, despite a recent decline in interest in such events.

6. Advertising.

Advertising is a 'paid for' communication. It is used to develop attitudes, create awareness, and transmit information in order to gain a response from the target market. There are many advertising 'media' such as newspapers (local, national, free, trade), magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor advertising (such as posters, bus sides).

7. Sponsorship.

Sponsorship is where an organization pays to be associated with a particular event, cause or image. Companies will sponsor sports events such as the Olympics or Formula One. The attributes of the event are then associated with the sponsoring organization.

The elements of the promotional mix are then integrated to form a unique, but coherent campaign.

Physical Evidence - Part of the Marketing MixPhysical evidence as part of the marketing mix

Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the following:

Packaging. Internet/web pages. Paperwork (such as invoices, tickets and dispatch notes). Brochures. Furnishings. Signage (such as those on aircraft and vehicles). Uniforms. Business cards. The building itself (such as prestigious offices or scenic headquarters). Mailboxes And many others …….

A sporting event is packed full of physical evidence. Your tickets have your team's logos printed on them, and players are wearing uniforms. The stadium itself could be impressive and have an electrifying atmosphere. You travelled there and parked quickly nearby, and your seats are comfortable and close to restrooms and store. All you need now is for your team to win!

Some organisations depend heavily upon physical evidence as a means of marketing communications, for example tourism attractions and resorts (e.g. Disney World), parcel and mail services (e.g. UPS trucks), and large banks and insurance companies (e.g. Lloyds of London).

People and Services Marketing'People' as part of the marketing mix.

People are the most important element of any service or experience. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the 'individual needs' of the person consuming it. Most of us can think of a situation where the personal service offered by individuals has made or tainted a tour, vacation or restaurant meal. Remember, people buy from people that they like, so the attitude, skills and appearance of all staff need to be first class. Here are some ways in which people add value to an experience, as part of the marketing mix - training, personal selling and customer service.

Training.

All customer facing personnel need to be trained and developed to maintain a high quality of personal service. Training should begin as soon as the individual starts working for an organization during an induction. The induction will involve the person in the organization's culture for the first time, as well as briefing him or her on day-to-day policies and procedures. At this very early stage the training needs of the individual are identified. A training and development plan is constructed for the individual which sets out personal goals that can be linked into future appraisals. In practice most training is either 'on-the-job' or 'off-the-job.' On-the-job training involves training whilst the job is being performed e.g. training of bar staff. Off-the-job training sees learning taking place at a college, training centre or conference facility. Attention needs to be paid to Continuing Professional Development (CPD) where employees see their professional learning as a lifelong process of training and development.

Personal Selling

There are different kinds of salesperson. There is the product delivery salesperson. His or her main task is to deliver the product, and selling is of less importance e.g. fast food, or mail. The second type is the order taker, and these may be either 'internal' or 'external.' The internal sales person would take an order by telephone, e-mail or over a counter. The external sales person would be working in the field. In both cases little selling is done. The next sort of sales person is the missionary.

Here, as with those missionaries that promote faith, the salesperson builds goodwill with customers with the longer-term aim of generating orders. Again, actually closing the sale is not of great importance at this early stage. The forth type is the technical salesperson, e.g. a technical sales engineer. Their in-depth knowledge supports them as they advise customers on the best purchase for their needs. Finally, there are creative sellers. Creative sellers work to persuade buyers to give them an order. This is tough selling, and tends to offer the biggest incentives. The skill is identifying the needs of a customer and persuading them that they need to satisfy their previously unidentified need by giving an order.

Customer Service

Many products, services and experiences are supported by customer services teams. Customer services provided expertise (e.g. on the selection of financial services), technical support (e.g. offering advice on IT and software) and coordinate the customer interface (e.g. controlling service engineers, or communicating with a salesman). The disposition and attitude of such people is vitally important to a company. The way in which a complaint is handled can mean the difference between retaining or losing a customer, or improving or ruining a company's reputation. Today, customer service can be face-to-face, over the telephone or using the Internet. People tend to buy from people that they like, and so effective customer service is vital. Customer services can add value by offering customers technical support and expertise and advice.

Process and Services MarketingProcess as part of the marketing mix

Process is another element of the extended marketing mix, or 7P's.There are a number of perceptions of the concept of process within the business and marketing literature. Some see processes as a means to achieve an outcome, for example - to achieve a 30% market share a company implements a marketing planning process.Another view is that marketing has a number of processes that integrate together to create an overall marketing process, for example - telemarketing and Internet marketing can be integrated. A further view is that marketing processes are used to control the marketing mix, i.e. processes that measure the achievement marketing objectives. All views are understandable, but not particularly customer focused.For the purposes of the marketing mix, process is an element of service that sees the customer experiencing an organisation's offering. It's best viewed as something that your customer participates in at different points in time. Here are some examples to help your build a picture of marketing process, from the customer's point of view.Going on a cruise - from the moment that you arrive at the dockside, you are greeted; your baggage is taken to your room. You have two weeks of services from restaurants and evening entertainment, to casinos and shopping. Finally, you arrive at your destination, and your baggage is delivered to you. This is a highly focused marketing process.

Booking a flight on the Internet - the process begins with you visiting an airline's website. You enter details of your flights and book them. Your ticket/booking reference arrive by e-mail or post. You catch your flight on time, and arrive refreshed at your destination. This is all part of the marketing process.

At each stage of the process, markets: Deliver value through all elements of the marketing mix. Process,

physical evidence and people enhance services. Feedback can be taken and the mix can be altered. Customers are retained, and other serves or products are extended

and marked to them. The process itself can be tailored to the needs of different individuals,

experiencing a similar service at the same time. Processes essentially have inputs, throughputs and outputs (or

outcomes). Marketing adds value to each of the stages. Take a look at the lesson on value chain analysis to consider a series of processes at work.

These were the Seven P’s which are commonly known by every people in detail.

But by the evolution of time these marketing mix points had increased from 7 P’s to 8 P’s.

Even if this mix doesn’t satisfy, 2 more P’s are added by the time.

Let me make you aware of the evolution of Marketing Mix.

10 Ps of the marketing mix

1. McCarthy's (1960) traditional marketing mix consists of  Product, Price, Place and Promotion

2. Kotler (1984:1986) added 2 more Ps - Public relations and Political Power

3. Magrath proposed another 3 more Ps to meet the needs for marketing in service-based industries - People, Physical evidence and Process

4. Y.S.Chin believes that Packaging should  be considered another P in the marketing mix

Public relations

Definition

Publicity according to etymonline.com is defined as - 1791, "condition of being public," from Fr. publicité (1694), from M.L. publicitatem (nom. publicitas), from L. publicus (see public). Sense of "making something known, advertising" is from 1826. Publicity stunt first recorded 1926. Publicize first recorded 1928. Publicist (1792) is from Fr., originally "writer on current topics;" meaning "press agent" is from 1930.

The term Public Relations was first used by the US President Thomas Jefferson during his address to Congress in 1807.

One of the earliest definitions of PR was created by Edward Bernays. According to him, "Public Relations is a management function which tabulates public attitudes, defines the policies, procedures and interest of an organization followed by executing a program of action to earn public understanding and acceptance.”

Examples/users of public relations include:

Corporations using marketing public relations (MPR) to convey information about the products they manufacture or services they provide to potential customers in order to support their direct sales efforts. Typically, they support sales in the short to long term, establishing and burnishing the corporation's branding for a strong, ongoing market.

Corporations using public relations as a vehicle to reach legislators and other politicians, in seeking favorable tax, regulatory, and other treatment. Moreover, they may use public relations to portray themselves as enlightened employers, in support of human-resources recruiting programs.

Non-profit organizations, including schools and universities, hospitals, and human and social service agencies: such organizations may make use of public relations in support of awareness programs, fund-raising programs, staff recruiting, and to increase patronage of their services.

Politicians aiming to attract votes and/or raise money. When such campaigns are successful at the ballot box, this helps in promoting and defending their

service in office, with an eye to the next election or, at a career’s end, to their legacy.

Today "Public Relations is a set of management, supervisory, and technical functions that foster an organization's ability to strategically listen to, appreciate, and respond to those persons whose mutually beneficial relationships with the organization are necessary if it is to achieve its missions and values." (Robert L. Heath, Encyclopedia of Public Relations).

Essentially it is a management function that focuses on two-way communication and fostering of mutually beneficial relationships between an organization and its publics.

There is a school of public relations that holds that it is about relationship management. Phillips, explored this concept in his paper "Towards relationship management: Public relations at the core of organisational development" paper in 2006 which lists a range of academics and practitioners who support this view.

Precursors Evidence of the practices used in modern day public relations are scattered through history. One notable practitioner was Georgiana Cavendish, Duchess of Devonshire whose efforts on behalf of Charles James Fox in the 18th century included press relations, lobbying and, with her friends, celebrity campaigning.

A number of American precursors to public relations are found in publicists who specialized in promoting circuses, theatrical performances, and other public spectacles. In the United States, where public relations has its origins, many early PR practices were developed in support of the expansive power of the railroads. In fact, many scholars believe that the first appearance of the term "public relations" appeared in the 1897 Year Book of Railway Literature.

Later, PR practitioners were—and are still often—recruited from the ranks of journalism. Some reporters, concerned with ethics, criticize former colleagues for using their inside understanding of news media to help clients receive favorable media coverage.

In the United Kingdom Sir Basil Clarke (1879-12 Dec 1947) was an early pioneer of public relations (PR).

Despite many journalists' discomfort with the field of public relations, well-paid PR positions remain a popular choice for reporters and editors forced

into a career change by the instability and often fewer economic opportunities provided by the print and electronic media industry.

Examples of prominent PR firms staffed by former journalists and television producers include organizations like Medialink, DS Simon and Mediahitman.

The first "names"

The First World War also helped stimulate the development of public relations as a profession. Many of the first PR professionals, including Ivy Lee, Edward Bernays, John Hill, and Carl Byoir, got their start with the Committee on Public Information (also known as the Creel Commission), which organized publicity on behalf of U.S. objectives during World War I. Some historians regard Ivy Lee as the first real practitioner of public relations, but Edward Bernays is generally regarded today as the profession's founder. In describing the origin of the term Public Relations, Bernays commented, "When I came back to the United States, I decided that if you could use propaganda for war, you could certainly use it for peace. And propaganda got to be a bad word because of the Germans.. using it. So what I did was to try to find some other words, so we found the words Council on Public Relations".

Ivy Lee, who has been credited with developing the modern news release (also called a "press release"), espoused a philosophy consistent with what has sometimes been called the "two-way street" approach to public relations, in which PR consists of helping clients listen as well as communicate messages to their publics. In the words of the Public Relations Society of America (PRSA), "Public relations helps an organization and its publics adapt mutually to each other." In practice, however, Lee often engaged in one-way propagandizing on behalf of clients despised by the public, including Standard Oil founder John D. Rockefeller. Shortly before his death, the US Congress had been investigating his work on behalf of the controversial Nazi German company IG Farben.

In the 1890s when gender role reversals could be caricaturized, the idea of an aggressive woman who also smoked was considered laughable. In 1929, Edward Bernays proved otherwise when he convinced women to smoke in public during an Easter parade in Manhattan as a show of defiance against male domination. The demonstrators were not aware that a tobacco company was behind the publicity stunt.

Bernays was the profession's first theorist. A nephew of Sigmund Freud, Bernays drew many of his ideas from Freud's theories about the irrational, unconscious motives that shape human behaviour. Bernays authored several books, including Crystallizing Public Opinion (1923), Propaganda (1928), and The Engineering of Consent (1947). Bernays saw public relations as an "applied social science" that uses insights from psychology, sociology, and other disciplines to scientifically manage and manipulate the thinking and behavior of an irrational and "herdlike" public. "The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society," he wrote in Propaganda. "Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country."

One of Bernays' early clients was the tobacco industry. In 1929, he orchestrated a legendary publicity stunt aimed at persuading women to take up cigarette smoking, an act that at the time was exclusively equated with men. It was considered unfeminine and inappropriate for women to smoke, besides the occasional prostitute, virtually no women participated in the act publicly.

Bernays initially consulted psychoanalyst A. A. Brill for advice, Brill told him: "Some women regard cigarettes as symbols of freedom... Smoking is a sublimation of oral eroticism; holding a cigarette in the mouth excites the oral zone. It is perfectly normal for women to want to smoke cigarettes. Further the first women who smoked probably had an excess of male components and adopted the habit as a masculine act. But today the emancipation of women has suppressed many feminine desires. More women now do the same work as men do.... Cigarettes, which are equated with men, become torches of freedom.”

Upon hearing this analysis, Bernays dubbed his PR campaign the: "Torches of Liberty Contingent".

It was in this spirit that Bernays arranged for New York City débutantes to march in that year's Easter Day Parade, defiantly smoking cigarettes as a

statement of rebellion against the norms of a male-dominated society. Publicity photos of these beautiful fashion models smoking "Torches of Liberty" were sent to various media outlets and appeared worldwide. As a result, the taboo was dissolved and many women were led to associate the act of smoking with female liberation. Some women went so far as to demand membership in all-male smoking clubs, a highly controversial act at the time.

For his work, Bernays was paid a tidy sum by George Washington Hill, president of the American Tobacco Company.

The Industry today

Modern public relations evaluates a product or individuals public perception through market research. Once data is collected and challenges are identified, solutions are presented in a campaign strategy to meet goals. Techniques may vary from campaign to campaign but some standard tools used are; press releases, press kits, satellite feeds, pod casts, web casts, wire service distribution of information and internet placement. Others include entertainment product placement (television, events, celebrity), product launches, press conferences, media seminars, producing events, speechwriting, establishing partnerships and more is often required.

According Don Sheelen,

"Examples of the knowledge that may be required in the professional practice of public relations include communication arts, psychology, social psychology, sociology, political science, economics, and the principles of management and ethics. Technical knowledge and skills are required for opinion research, public issues analysis, media relations, direct mail, institutional advertising, publications, film/video productions, special events, speeches, and presentations."

Although public relations professionals are stereotypically seen as corporate servants, the reality is that almost any organization that has a stake in how it is portrayed in the public arena employs at least one PR manager. Large organizations may even have dedicated communications departments. Government agencies, trade associations, and other non-profit organizations commonly carry out PR activities.

Public relations are an important management function in any organization. An effective communication, or public relations, plan for an organization is developed to communicate to an audience (whether internal or external publics) in such a way the message coincides with organizational goals and seeks to benefit mutual interests whenever possible.

As industry consolidation becomes more prevalent, many organizations and individuals are choosing to retain "boutique" firms as opposed to so-called "global" communications firms. These smaller firms typically specialize in only a couple of practice areas and thus, often have a greater understanding of their client's business. And because they deal with certain journalists with greater frequency, specialty firms often have stronger media contacts in the areas that matter most to their clients. Added benefits of smaller, specialty firms include more personal attention and accountability and as well, cost savings. This is not to say that smaller is always better, but there is a growing consensus that specialty firms offer more than once considered.

Organizations that cater to specialized or "boutique" practices include specific subgenres such as "Broadcast PR", and include firms like Medialink, WestGlen, DS Simon, kelly fogelman group and Mediahitman. These groups use traditional PR techniques but devote most of their efforts towards gaining exposure via broadcast and cable television news outlets. As newspapers downsize across the country due to the impact of internet news, television has become an important vehicle in establishing customer aquisition. Reputable firms, create solid stories for broadcast which appear on talk shows like Oprah, Good Morning America or news broadcast etc.. Questionable public relation firms create "spin." which is slanted stories to serve their cleint's interest. Recent pressure from watchgroups like the Center for Media and Democracy has resulted in Federal review of "spin" practices.

A number of specialties exist within the field of public relations, including:

product placement

product launches

broadcast public relations

reputation management

issue management

investor relations and labor relations

grassroots PR (sometimes referred to as "astroturf PR")

crisis management {Methods, tools, and tactics}

Public relations and publicity are not synonyms. Publicity is the spreading of information to gain public awareness in a product, service, candidate, etc. It is just one technique of public relations as listed here.

Audience targeting

A fundamental technique used in public relations is to identify the target audience, and to tailor every message to appeal to that audience. It can be a general, nationwide or worldwide audience, but it is more often a segment of a population. Marketers often refer to economy-driven "demographics," such as "white males 18-49," but in public relations an audience is more fluid, being whoever someone wants to reach. For example, recent political audiences include "soccer moms" and "NASCAR dads."

In addition to audiences, there are usually stakeholders, literally people who have a "stake" in a given issue. All audiences are stakeholders (or presumptive stakeholders), but not all stakeholders are audiences. For example, a charity commissions a PR agency to create an advertising campaign to raise money to find a cure for a disease. The charity and the people with the disease are stakeholders, but the audience is anyone who is likely to donate money.

Sometimes the interests of differing audiences and stakeholders common to a PR effort necessitate the creation of several distinct but still complementary messages. This is not always easy to do, and sometimes – especially in politics – a spokesperson or client says something to one audience that angers another audience or group of stakeholders.

Political Marketing (Power)

INTRODUCTIONMarketing theory has been influenced by many different disciplines (Arndt, 1983) but it has also contributed, in a reciprocal relationship, to the development of other academic areas within management studies (Day, 1992; Hunt and Lambe, 2000) and, arguably, beyond. In particular the aspect of ‘broadening’ the core explananda of marketing (Kotler and Levy, 1969; Luck, 1969; Kotler, 1972; Enis, 1973; Hunt, 1976; Arndt, 1978; Arndt, 1982; Hunt and Burnett, 1982; Hunt, 1983; Levy, 2002) has enhanced the scope for cross-fertilisation between disciplines. In the area of social and non-profit marketing (Andreason, 1994; Kotler and Andreason, 1995) the application of marketing theory to the political sphere constitutes a relatively new phenomenon (O’Shaughnessy, 1990; Kotler and Kotler, 1999). While there exists a considerable stock of knowledge concerning political marketing, especially in the areas of campaign management, political marketing strategies and comparative political marketing (Newman, 1994a; Kavanagh, 1995; Scammell, 1995; Holbrook, 1996; Butler and Collins, 1999; Baines and Egan, 2001; Johnson, 2001; Lees- Marshment, 2001), the essence of political marketing theory remains somewhat opaque; crucial elements are still ill-defined in marketing terms, e.g. the ‘political market’, or the ‘political product’, and the underlying exchange process (Scammell, 1999; Newman, 2002; O’Shaughnessy and Henneberg, 2002a). This is sometimes explained by the notion that “traditional marketing frameworks do not fit neatly into a political marketing configuration” (Dean and Croft, 2001, p. 1197). Furthermore, no clear understanding of the ontological and epistemological implications of a ‘marketing perspective on politics’ has been developed due to the research focus on descriptive studies that attempt to explain what political actors actually do (Marland, 2003). In this paper, I argue that this ‘managerial’ focus constitutes only one element of political marketing theory. What has been neglected is an epistemological view of political marketing as a ‘research lens’, a meta-theoretical vehicle for making-sense of the political sphere. The differences (and dialectic) of these two perspectives of political marketing theory will be introduced and the application of political marketing theory as an epistemological tool will be outlined. As such, this conceptual paper will contribute to the main focus of this AMA 2004 Summer Educators’Conference by ‘enhancing knowledge development in marketing’ through an assessment of, and the provision of a new research perspective for, political marketing theory. In order to develop this argument, the appropriate point of departure is provided by a concise overview of the ‘state-of-affairs’ in political marketing, beginning with applied marketing applications in politics, followed by a discussion of existing research on political marketing. This will be followed by the main section of this paper, tackling the two different

facets of political marketing theory: initially with a description and understanding of managerial marketing activities, and next an epistemological stance to gain understanding of political phenomena in general. Finally, the implications of both aspects will be discussed.

THE ‘STATE-OF-AFFAIRS’ IN POLITICAL MARKETINGPolitical Marketing Management

It has often been argued that the application of ‘marketing’ tools and instruments in politics is nothing new. This may or may not be the case, but what certainly has changed in the last 25 years is not (just) the magnitude of political marketing management but the belief that political actors (and these include not only political parties and politicians but also governments, singleissue groups, lobbying organisations, etc.) not only act out but also ‘think’ in marketing terms; they believe that they do marketing management, and they try to integrate their use of marketing instruments in a coherent marketing strategy. This is notwithstanding the idea that much of their ‘marketing knowledge’ might be “political folk wisdom”. The changes in the ‘mind-sets’ of political actors have been tracked in several studies, and have been considered a “revolution” or even a “new age in politics” . In addition, political marketing applications have moved from solely a communication tool to an integrated way of managing politics, be it policy development, permanent campaigning, or even governing (to the extent that government has become ‘symbolic’ in certain circumstances) (O’Shaughnessy, 2003). Six main developments of applied applications of political marketing can be generalised for most democratic political systems in the last two decades: an increased sophistication of communication and ‘spin’ strategies for product and image management; news-management, i.e. the use of ‘free’ media; more coherent and planned political marketing strategy development; intensified and integrated use of political market research; and emphasis on political marketing organisation and professionalization.

However, most political actors are far from having an integrated and sophisticated understanding of marketing applications for their political exchange situations. Political marketing management in politics has caused some ‘leading’ parties and candidates to adopt a simplistic and populistic ‘follower’-mentality, contributing to the disenchantment of the electorate and a resulting cynicism regarding politics in general.

Research on Political MarketingSerious, intensive, coordinated research activities on marketing applications in politics constitute a fairly recent addition to the area of social and non-profit marketing. The field of political marketing started to form fifteen to twenty years ago with several seminal contributions that introduced topical foci and in-depth analyses of marketing instruments; but none proffered a ‘general’ theory. However, research on political marketing quickly gained

momentum, driven mainly by the dynamic development of marketing applications by political parties and candidates. Although technological drivers, especially in the media arena, are often quoted as being the main reason for this accelerated development (Newman, 1994a; Newman, 1994b), an amalgamation of crucial changes in the political sphere fostered this development: a weakening of political ‘cleavage-systems’ and consequently lower levels of party identification and higher electoral volatility as well as more competitive pressure in the political market through non-electoral competition, less differentiation between political offers, and a general professionalisation of political management activities. To provide a new understanding of these phenomena and the reactions of political actors, research on political marketing became an established sub-discipline of marketing, especially in France, the UK, Germany, Australia, as well as the USA. The need to describe and understand these phenomena instigated numerous publications in standard marketing and politics journals (e.g. special issues on political marketing in the European Journal of Marketing, the Journal of Marketing Management, or the Journal of Public Affairs) as well as books and monographs and also the establishment of dedicated fora for discourse on political marketing. For examples, since 1995 there has been an International Conference on Political Marketing held annually, also a dedicated Journal of Political Marketing was founded (Newman, 2002) and a Handbook of Political Marketing published (Newman, 1999a). Whilst the institutional requirements for the development of political marketing theory are in place, an assessment of current research on political marketing shows shortcomings. Without being able to go into considerable detail the following presents a concise critique of the existing body of knowledge.

A distinct bias in the research foci of marketing instrument usage in campaign situations obscures the more general and theoretical discussions. Whilst communication, market research tools and other political marketing instruments have been well analyzed and compared, with regard to the contingencies of their usage, this has been undertaken on a descriptive level. Prescriptive studies are rare. Furthermore, this writer has suggested that more fundamental issues such as ethical dimensions of political marketing, underlying exchange mechanisms and the interaction of marketing activities with the political system have remained under researched.As such, political marketing ‘theories’ have not been developed in any depth. Many crucial definitorial discussions have remained unresolved, not resulting from competing positions and interpretations but because of negligence and inactivity in these areas. Furthermore, a tendency towards ossification exists as many political marketing studies use an over-simplistic ‘managerial’ interpretation of marketing classified by Carman (1980) as part of the persuasion/attitude change paradigm, and oriented towards the 4Ps and the marketing mix. This causes a decoupling of research in political marketing from fresh developments of marketing theory, be it on conceptual or epistemological levels. For examples, relational marketing concepts which

have gained importance in marketing theory in the last decades, do not find their equivalent in political marketing or non-profit marketing, for that matter . Several arguments have been put forward that theoretical and applied research on political marketing needs to be more innovative; and a next phase of activities is advocated to reinvigorate the discipline.Following this initial overview of research on political marketing, I now address political marketing theory from a conceptual perspective, i.e. analysing what the core of such a theory needs to provide. As the following discussion shows, this core encompasses two different aspects in a dialectic embrace. While one aspect has dominated the literature so far (and might therefore be used to explain the current situation of research in political marketing), it is important to understand the other argument in order to utilize political marketing theory to its full potential.

Packaging

A sealed pack of diced pork from Tesco. It shows the cooking time, number of servings, 'display until' date, 'use by' date, weight in kg, price, price to weight ratio in both £/kg and £/lb, freezing and storage instructions. It

says 'Less than

3% Fat' and 'No Carbs per serving' and includes a barcode. The Union Flag, British Farm Standard tractor logo, and British Meat Quality Standard logo imply that it is British pork.

Tablets in a blister pack, which was itself packaged in a folding carton made of paperboard.

Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Package labelling (BrE) or labeling (AmE) is any written, electronic, or graphic communications on the packaging or on a separate but associated label.

Packaging is heavily integrated into our daily lives, we see it all around us, on everyday items such as chocolate bars and potato chip (crisp) packets- As explained below, the main use for packaging is protection of the goods inside, but packaging also provides us with a recognisable logo, or packaging, we instantly know what the goods are inside.

The purposes of packaging and package labels

Packaging and package labelling have several objectives:

Physical Protection - The objects enclosed in the package may require protection from, among other things, shock, vibration, compression, temperature, etc.Barrier Protection - A barrier from oxygen, water vapor, dust, etc., is often required. Package permeability is a critical factor in design. Some packages contain desiccants or Oxygen absorbers to help extend shelf life. Modified atmospheres or controlled atmospheres are also maintained in some food packages. Keeping the contents clean, fresh, and safe for the intended shelf life is a primary function.Containment or Agglomeration - Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. Liquids, powders, and flowables need containment.Information transmission - Packages and labels communicate how to use, transport, recycle, or dispose of the package or product. With pharmaceutical, food, medical, and chemical products, some types of information are required by governments.Marketing - The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Package design has been an important and constantly evolving phenomenon for dozens of years. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display.Security - Packaging can play an important role in reducing the security risks of shipment. Packages can be made with improved tamper resistance to deter tampering and also can have tamper-evident features to help indicate tampering. Packages can be engineered to help reduce the risks of package pilferage: Some package constructions are more resistant to pilferage and some have pilfer indicating seals. Packages may include authentication seals to help indicate that the package and contents are not counterfeit. Packages also can include anti-theft devices, such as dye-packs, RFID tags, or electronic article surveillance tags, that can be activated or detected by devices at exit points and require specialized tools to deactivate. Using packaging in this way is a means of loss prevention.Convenience - Packages can have features which add convenience in distribution, handling, display, sale, opening, reclosing, use, and reuse.Portion Control - Single serving or single dosage packaging has a precise amount of contents to control usage. Bulk commodities (such

as salt) can be divided into packages that are a more suitable size for individual households. It is also aids the control of inventory: selling sealed one-liter-bottles of milk, rather than having people bring their own bottles to fill themselves.

Packaging Types

Various household packaging types for

foods

Packaging may be looked at as several different types. For example a transport package or distribution package is the package form used to ship, store, and handle the product or inner packages. Some identify a consumer package as one which is directed toward a consumer or

household.

It is sometimes convenient to categorize packages by layer or function: "primary", "secondary", etc.

Primary packaging is the material that first envelops the product and holds it. This usually is the smallest unit of distribution or use and is the package which is in direct contact with the contents.

Secondary packaging is outside the primary packaging – perhaps used to group primary packages together.

Tertiary packaging is used for bulk handling and shipping.

Using these three types as a general guide, examples of packaging materials and structures might typically be listed as follows:

Primary packaging

Aerosol spray can

Bags-In-Boxes Beverage can Wine box Bottles Blister packs Carton Cushioning Envelopes Plastic bags Plastic bottles Skin pack Tin can Wrappers

Secondary packaging

Boxes Cartons Shrink wrap

Tertiary packaging

Bales Barrel Crate Container Edge protector Flexible intermediate bulk container, “Big Bag”, or “Super Sacks” Insulated shipping container Intermediate bulk container Pallets Slip Sheet Stretch wrap

These broad categories can be somewhat artibrary. For example, depending on the use, a shrink wrap can be primary packaging when applied directly to the product, secondary packaging when combining smaller packages, and tertiary packaging on some distribution packs.

Symbols used on packages and labels

Many types of symbols for package labelling are nationally and internationally standardized. For consumer packaging, symbols exist for product certifications, trademarks, proof of purchase, etc. Some

requirements and symbols exist to communicate aspects of consumer use and safety. Recycling directions, Resin identification code (below), and package environmental claims have special codes and symbols.

Bar codes (below), Universal Product Codes, and RFID labels are common to allow automated information management.

Shipments of hazardous materials or dangerous goods have special information and symbols as required by UN, country, and specific carrier requirements. Two examples are below:

With transport packages, standardised symbols are also used to aid in handling. Some common ones are shown below while others are listed in ASTM D5445.

"Standard Practice for Pictorial Markings for Handling of Goods" and ISO 780 "Pictorial marking for handling of goods".

Fragile Use no hand

hooks

This way up Keep away from

sunlight

Keep away from

water

Centre of gravity

Clamp as

indicatedDo not clamp as

indicated

Package development considerations

Package design and development are often thought of as an integral part of the new product development process. Alternatively, development of a package (or component) can be a separate process, but must be linked closely with the product to be packaged. Package design starts with the identification of all the requirements: structural design, marketing, shelf life, quality assurance, logistics, legal, regulatory, graphic design, end-use, environmental, etc. The design criteria, time targets, resources, and cost constraints need to be established and agreed upon.

Transport packaging needs to be matched to its logistics system. Packages designed for controlled shipments of uniform pallet loads may not be suited to mixed shipments with express carriers.

An example of how package design is affected by other factors is the relationship to logistics. When the distribution system includes individual shipments by a small parcel carrier, the sortation, handling, and mixed stacking make severe demands on the strength and protective ability of the transport package. If the logistics system is for uniform pallet loads that are unitized, the structural design of the package can be designed to those specific needs: vertical stacking, perhaps for a longer time frame. A package designed for one mode of shipment may not be suited for another.

Sometimes the objectives of package development seem contradictory. For example, packaging for an over-the-counter drug might require tamper resistance and child resistant features: These intentionally make the package difficult to open. The intended consumer, however, might be handicapped or elderly and be unable to readily open the package.

Package design may take place within a company or with various degrees of external packaging engineering: contract engineers, consultants, vendor evaluations, independent laboratories, contract packagers, total outsourcing, etc. Some sort of formal Project planning and Project Management methodology is required for all but the simplest package design and development programs.

Package development involves considertions for sustainability, environmental responsibiity, and applicable environmental and recycling regulations. It may involve a life cycle assessment which considers the material and energy inputs and outputs to the package, the packaged product (contents), the packaging process, the logistics system, waste management, etc. It is necessary to know the relevant regulatory requirements for point of manufacture, sale, and use.

The traditional “three R’s” of reduce, reuse, and recycle are part of a waste hierarchy which may be considered in product and package development.

The waste hierarchy

Prevention – Waste prevention is a primary goal. Packaging should be used only where needed. Proper packaging can also help prevent waste. Packaging plays an important part in preventing loss or damage to the packaged-product (contents). Usually, the energy content and material usage of the product being packaged are much greater than that of the package. A vital function of the package is to protect the product for its intended use: if the product is damaged or degraded, its entire energy and material content may be lost.

Minimization – (also ‘’source reduction’’) The mass and volume of packaging (per unit of contents) can be measured and used as one of the criteria to minimize during the package design process. Usually “reduced” packaging also helps minimize costs. Packaging engineers continue to work toward reduced packging.

Reuse – The reuse of a package or component for other purposes is encouraged. Returnable packaging has long been useful (and economically viable) for closed loop logistics systems. Inspection, cleaning, repair and recouperage are often needed.

Recycling – Recycling is the reprocessing of materials (pre- and post-consumer) into new products. Emphasis is focused on recycling the largest primary components of a package: steel, aluminum, papers, plastics, etc. Small components can be chosen which are not difficult to separate and do not contaminate recycling operations.

Energy recovery – Waste-to-energy and Refuse-derived fuel in approved facilities are able to make use of the heat available from the packaging components.

Disposal – Incineration, and placement in a sanitary landfill are needed for some materials. Material content should be checked for potential hazards to emissions and ash from incineration and leachate from landfill. Packages should not be littered.

Conclusion

These are the concepts of Marketing. But to be successful it is not just the concepts but the application of marketing concepts towards a healthy future of any entrepreneur. With the negligence of these marketing concepts, it is hard for any firm to stand in these world.

Bibliography

www.google.com

www.wikipedia.com

www.mba.com

www.quickmba.com

Above are the sites the sources belong.

Books referred

Marketing Management - Philips Kotler

Political Marketing Theory: - Stephan C. M. HennebergHendiadyoin or Oxymoron University of Bath

School of ManagementWorking Paper Series2004.01